We wouldn’t normally review a loans website but this one has something quite unique which we thought would be worth mentioning for anyone who has a little spare cash. Ratesetter.com is a peer to peer lending site so if you are interested in finding out how you can lend your money out and make some profit this may be the one for you.
About The Website
As we’ve already mentioned Ratesetter.com is a peer to peer lending website. What this basically means is that you, the lender, lend directly to the borrower cutting out the bank (That’s what they do with your money anyway). The rates you can get for your money are considerably better than at high street banks but you also take on the risk of lending.
Where ratesetter is different from their competitors is that you have the choice as to whether you lend your money for 30 days or up to three years and also your money is pooled and lent to multiple people rather than just one person which reduces the risk. If you decide to lend for 30 days you are reducing the risk of bad debt but won’t get as much interest. You can lend anything from £100 but obviously as the sums get larger so does the risk.
What We Think
For someone with a little spare cash ratesetter.com may be the ideal place to give lending a go. It’s fully regulated as you would expect and the website owners work to ensure that bad debts are kept to the minimum. Obviously there is some risk so we wouldn’t suggest you run out and put £2000 in straight away but try it with £100 it may earn your saving a few extra quid.